DBRS upgrades Greece

DBRS said it upgraded the Hellenic Republic (Greece)’s long-term foreign and local currency issuer ratings to CCC (high) from CC and confirmed the short-term foreign and local currency issuer ratings at R-5.

The ratings are no longer under review, and the trend on all of the ratings is stable.

DBRS said the upgrade and stable trend reflect its view that the current financial support program by the institutions (the European Commission, European Central Bank, European Stability Mechanism and International Monetary Fund) is resulting in the stabilization of the economy and the banking sector.

The July 2015 agreement between the Greek authorities and the institutions on a three-year €86 billion third adjustment program eased the acute liquidity squeeze and removed the imminent threat of a departure of Greece from the Eurozone and a subsequent debt default.

The Greek parliament has approved several rounds of fiscal and structural measures, while the Greek banks have undergone a comprehensive assessment of their capital needs by the European Central Bank and have completed a recapitalization exercise. This paved the way for the European Stability Mechanism to release finances to the Greek government and the Hellenic Financial Stability Fund for bank recapitalization and resolution.

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